LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
Canada - TSX:LNR - CA53278L1076 - Common Stock
71.09 CAD
-0.66 (-0.92%)
Taking everything into account, LNR scores 5 out of 10 in our fundamental rating. LNR was compared to 5 industry peers in the Automobile Components industry. LNR has only an average score on both its financial health and profitability. LNR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LNR had positive earnings in the past year.
In the past year LNR had a positive cash flow from operations.
In the past 5 years LNR has always been profitable.
In the past 5 years LNR always reported a positive cash flow from operatings.
1.2 Ratios
LNR has a Return On Assets of 1.95%. This is in the lower half of the industry: LNR underperforms 60.00% of its industry peers.
LNR has a Return On Equity of 3.62%. This is in the lower half of the industry: LNR underperforms 60.00% of its industry peers.
LNR's Return On Invested Capital of 7.15% is amongst the best of the industry. LNR outperforms 100.00% of its industry peers.
LNR had an Average Return On Invested Capital over the past 3 years of 6.55%. This is in line with the industry average of 6.27%.
The 3 year average ROIC (6.55%) for LNR is below the current ROIC(7.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROIC | 7.15% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
LNR has a worse Profit Margin (2.06%) than 60.00% of its industry peers.
In the last couple of years the Profit Margin of LNR has declined.
Looking at the Operating Margin, with a value of 9.01%, LNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LNR's Operating Margin has been stable in the last couple of years.
LNR has a Gross Margin of 14.59%. This is comparable to the rest of the industry: LNR outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of LNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LNR is destroying value.
The number of shares outstanding for LNR has been reduced compared to 1 year ago.
LNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNR is higher compared to a year ago.
2.2 Solvency
LNR has an Altman-Z score of 2.68. This is not the best score and indicates that LNR is in the grey zone with still only limited risk for bankruptcy at the moment.
LNR has a Altman-Z score (2.68) which is comparable to the rest of the industry.
LNR has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as LNR would need 2.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.41, LNR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that LNR is not too dependend on debt financing.
LNR's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. LNR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.91
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.80 indicates that LNR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.80, LNR is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that LNR should not have too much problems paying its short term obligations.
The Quick ratio of LNR (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for LNR have decreased by -1.02% in the last year.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
LNR shows a decrease in Revenue. In the last year, the revenue decreased by -2.60%.
LNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
3.2 Future
Based on estimates for the next years, LNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.73% on average per year.
The Revenue is expected to grow by 0.01% on average over the next years.
EPS Next Y3.59%
EPS Next 2Y5.49%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue Next Year-4.61%
Revenue Next 2Y-0.93%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.30, which indicates a rather cheap valuation of LNR.
Based on the Price/Earnings ratio, LNR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
LNR is valuated cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.51 indicates a rather cheap valuation of LNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNR is on the same level as its industry peers.
LNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
LNR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNR is cheaper than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNR indicates a rather cheap valuation: LNR is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 3.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.03
PEG (5Y)1.1
EPS Next 2Y5.49%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
LNR has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 3.51, LNR is paying slightly less dividend.
LNR's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of LNR is nicely growing with an annual growth rate of 15.99%!
LNR has paid a dividend for at least 10 years, which is a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
30.00% of the earnings are spent on dividend by LNR. This is a low number and sustainable payout ratio.
LNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30%
EPS Next 2Y5.49%
EPS Next 3Y10.73%
TSX:LNR (10/15/2025, 7:00:00 PM)
71.09
-0.66 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners17.55%
Inst Owner ChangeN/A
Ins Owners35.48%
Ins Owner ChangeN/A
Market Cap4.25B
Analysts78
Price Target81.43 (14.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP30%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)1.02%
Max EPS beat(2)12.18%
EPS beat(4)3
Avg EPS beat(4)6.78%
Min EPS beat(4)-0.57%
Max EPS beat(4)14.48%
EPS beat(8)7
Avg EPS beat(8)8.99%
EPS beat(12)10
Avg EPS beat(12)8.3%
EPS beat(16)13
Avg EPS beat(16)10.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)-2.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)-1.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)7
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.73%
PT rev (1m)0%
PT rev (3m)22.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.74%
EPS NY rev (1m)0.2%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.51 | ||
| P/S | 0.42 | ||
| P/FCF | 4.64 | ||
| P/OCF | 3.18 | ||
| P/B | 0.73 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 3.54 |
EPS(TTM)9.74
EY13.7%
EPS(NY)10.93
Fwd EY15.37%
FCF(TTM)15.32
FCFY21.55%
OCF(TTM)22.36
OCFY31.46%
SpS170.31
BVpS97.05
TBVpS64.37
PEG (NY)2.03
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROCE | 11.38% | ||
| ROIC | 7.15% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 11.29% | ||
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% | ||
| FCFM | 9% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 67.65% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.8% | ||
| Profit Quality | 435.81% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.68 |
F-Score7
WACC7.87%
ROIC/WACC0.91
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
EPS Next Y3.59%
EPS Next 2Y5.49%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
Revenue Next Year-4.61%
Revenue Next 2Y-0.93%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
EBIT growth 1Y0.83%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year65.27%
EBIT Next 3Y22.2%
EBIT Next 5YN/A
FCF growth 1Y489.26%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y71.08%
OCF growth 3Y11.33%
OCF growth 5Y1.44%